KINGSEY FALLS, QC, June 23, 2008 (Press Release) - Cascades S.A., Division La Rochette will host a major biomass-fuelled electric power generation project. Under the management of Cofathec, a Gaz de France subsidiary, the Cégaz project will enable a 7,500-ton reduction in the coated boxboard mill's CO2 emissions and generate 40 million kWh of electricity that will be returned to France's transmission grid. This cogeneration power plant will be operational by 2010.
The Cégaz project will promote an innovation that represents a first for France: wood gasification technology, the 30-million-euro implementation cost of which will be covered by Gaz de France. This initiative is part of the second call for tenders, pertaining to cogeneration power plants, that the Commission de Régulation de l'Énergie (CRE) has issued in France in order to meet the country's renewable energy production objectives.
"We are very pleased to be involved in the Cégaz project," said Daniel Parrot, managing director of Cascades S.A., Division La Rochette. "This undertaking will make it possible for us to virtually eliminate our use of fossil energy, replacing it with biomass energy, to achieve better control of our energy costs and to pool our equipment operating costs."
The Cégaz project was announced concomitantly with another environment-saving measure introduced by Cascades La Rochette: the start-up of a new turbine-driven alternator, also fuelled by biomass. This cogeneration project, which required investments totalling 2 million euros, will produce 5.4 MWh of electricity.
Cascades S.A., Division La Rochette has also received confirmation of a two-year extension on the TaRTAM electricity rates system, which translates to yearly savings for this facility of 4 million euros in 2009 and 2010.
Founded in 1964, Cascades produces, converts and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs nearly 14,000 men and women who work in some 100 modern and flexible production units located in North America and in Europe. Cascades' management philosophy, its more than 40 years of experience in recycling and its continued efforts in research and development are strengths which enable the company to create innovative products for its clients.
Cascades S.A. is the European division of Cascades Inc. Present in Europe since 1985, Cascades owns two virgin boxboard mills (in France and Sweden) and offers a wide range of coated cartonboard for packaging in the food and non-food industries. Cascades also owns a 31% equity investment in Reno de Medici S.p.A. (RM on the Milan stock exchange), the second largest boxboard producer in Europe.
